Banks and fintechs like HDFC Bank, PhonePe, and Google Pay have deployed their field agents to convince Paytm merchants to switch to their platforms
On Jan 31, the RBI barred Paytm Payments Bank from taking any deposits or credit transactions, or top-ups in any of its customer accounts
The shares of Paytm have been on a free fall since the RBI's action and slumped to an all-time low of INR 318.35 during intraday trading on the BSE on February 16
The Reserve Bank of India (RBI) clamped down on Paytm Payments Bank on January 31, 2024, barring it from taking any deposits or credit transactions or top-ups in any of its customer accounts. The central bank also stopped Paytm Payments Bank from providing any other banking services, such as UPI facility and fund transfers, after February 29, 2024.
Shares of Paytm have been on a free fall following the announcement of the central bank’s action on its payments bank and hit an all-time low of INR 342.35 on the BSE on February 14 (Tuesday). From reports of the Enforcement Directorate probing the lapses at the bank to Paytm’s rivals PhonePe and Google Pay making efforts to woo the fintech giant’s merchants, a lot has happened at the company since the RBI’s action.
We are running this live blog to keep you updated with the latest happenings at Paytm. Here’s a quick rundown on the major developments so far:
Feb 26, 2024, 12:00 IST: Shares of One97 Communications Limited, the parent entity of Paytm, hit a 5% upper circuit during the early trading session on Monday (February 26). As of 11:10 am, the stock was trading at INR 428 on NSE. Read more
Feb 26, 2024, 11:00 IST: Embattled Paytm Payments Bank has told the Enforcement Directorate (ED) that it does not have the license required for outward foreign remittances and hence the question of it breaching the Foreign Exchange Management Act (FEMA) does not arise. Read more
Feb 21, 2024, 13:00 IST: Continuing its gains for the fourth consecutive trading session, shares of Paytm opened 5% higher on Wednesday, once again touching the upper circuit at INR 395.25 on the BSE. Read more
Feb 20, 2024, 11:00 IST: Shares of One 97 Communications Ltd, the parent company of Paytm, jumped 5% to hit its upper circuit limit of INR 376.45 during Tuesday’s (February 20) trading session. Read more
Feb 19, 2024, 14:00 IST: Shares of fintech major Paytm opened Monday’s (February 19) trading session 5% higher, touching the upper circuit at INR 358.55 on the BSE, registering the second consecutive day of steady gain. Read more
Feb 16, 2024, 18:57 IST: After the RBI refused to extend the timeline for the termination of the payments bank’s nodal account, Paytm has said that it has shifted the nodal account, by way of opening an escrow account, to Axis Bank. Read more
Feb 16, 2024, 18:57 IST: In detailed FAQs issued on the ongoing Paytm Payments Bank fiasco, the RBI has clarified that Paytm QR codes, soundboxes and card machines will continue to be operational post the March 15 deadline, provided the merchants migrate to other banks. Read more
Feb 16, 2024, 17:30 IST: In some partial relief for Paytm Payments Bank, the RBI has extended the deadline for stopping other banking services, such as UPI facility and fund transfers, to March 15. However, the central bank has stuck to the February 29 deadline for the termination of the nodal accounts of “One97 Communications and Paytm Payments Services maintained by Paytm Payments Bank”. Read more
Feb 16, 2024, 12:30 IST: Shares of One 97 Communications, the parent company of fintech major Paytm, continued to hit a new low for the fifth consecutive day on Friday (February 16). The fintech major’s shares fell another 2% on Friday to hit a fresh record low of INR 318.35 on the BSE. So far in the week, since Monday, the stock has lost 23% of its market value following the regulatory action on its payments bank.
Feb 16, 2024, 10:30 IST: The road tolling authority has issued a fresh alert urging highway users to buy FASTags from authorised banks and the name of Paytm has been omitted from the list. Read more
Feb 14, 2024, 20:00 IST: Responding to reports of the Enforcement Directorate (ED) registering a case of forex violations against Paytm Payments Bank, Paytm said its banking unit does not undertake outward foreign remittances. Read more
Feb 14, 2024, 11:30 IST: Amid the ongoing crisis at Paytm, the Reserve Bank of India (RBI) has reportedly asked Directorate of Enforcement (ED) to check for suspected breaches at the fintech major’s banking unit Paytm Payments Bank. Read more
Feb 14, 2024, 10:00 IST: With hardly any respite for fintech major Paytm, its shares hit a fresh record low at INR 342.4 on the BSE during the early trading hours on Wednesday (February 14), slumping almost 10% once again. Read more
Feb 13, 2024, 22:00 IST: Banks and fintechs like HDFC Bank, PhonePe, and Google Pay have deployed their agents on the ground to convince Paytm merchants to switch to their platforms. These platforms are even offering discounts to woo merchants. However, Paytm is also working overtime to protect its 37-Mn strong merchant base. Read more
Feb 13, 2024, 10:30 IST: Shares of fintech giant Paytm declined nearly 9% to hit 52-week low at INR 385.75 during Tuesday’s (February 13) trading session on the BSE. This comes soon after brokerage firm Macquarie downgraded One97 Communications’ stock ratings to ‘underperform’ and lowered its target price to INR 275 from INR 650. Read more
Feb 12, 2024, 16:30 IST: RBI governor Shaktikanta Das said there is “hardly any room” to review the action taken by the central bank on Paytm Payments Bank. The governor reiterated that the RBI would come out with FAQs on the matter later this week. Read more
Feb 12, 2024, 10:45 IST: In an exchange filing, Paytm confirmed the exit of Paytm Payments Bank’s independent director Manju Agarwal from the board of the bank. Read more
Feb 12, 2024, 10:15 IST: An inter-ministerial committee is examining the foreign direct investment (FDI) from China into Paytm Payments Services Ltd (PPSL), a subsidiary of Paytm parent One97 Communications Ltd. A decision regarding the FDI issue will be made after thorough consideration and a comprehensive examination of the matter. Read more
Feb 10, 2024, 07:00 IST: In a major respite amid the ongoing troubles, Paytm is close to getting approval from the authorities for additional investment in its payments arm Paytm Payments Services Ltd. Read more
Feb 9, 2024, 21:00 IST: Paytm Payments Bank is looking to hire an external firm to audit its compliance and know-your-customer processes. Read more
Feb 9, 2024, 18:44 IST: Paytm announced the formation of a group advisory committee, headed by former SEBI chairman M Damodaran, to address compliance and regulatory issues. Other members comprise ex-ICAI president MM Chitale and former chairman and managing director of Andhra Bank R Ramachandran. Read more
Feb 9, 2024, 13:30 IST: Paytm Payments Bank’s failure to address deficiencies in its internal risk management system, especially for transactions pertaining to politically exposed persons (PEPs), despite repeated warnings from the RBI led to the central bank’s action on it. However, the payments bank said any concerns regarding monitoring of PEPs are “highly speculative”. Read more
Feb 9, 2024, 11:30 IST: Paytm has acquired ONDC seller Bitsila via Paytm Ecommerce Private Ltd, now renamed to PAI Platform Private Ltd, to strengthen its presence on the network, sources told Inc42. However, Paytm denied this. Read more
Feb 9, 2024, 10:30 IST: The Reserve Bank of India will meet Paytm’s key stakeholders, including National Highways Authority of India (NHAI) and National Payments Corporation of India (NPCI) among others, next week to finalise modalities for migrating merchants and consumers from the fintech platform. Read more
Feb 8, 2024, 20:45 IST: Amid the ongoing crisis, Paytm Payments Bank has restructured its board. As part of this restructuring exercise, independent directors Manju Agarwal and Shinjini Kumar have quit the board of the troubled payments bank, sources told Inc42. Read more
Feb 8, 2024, 15:16 IST: RBI’s deputy governor Swaminathan Janakiraman has clarified that the central bank’s action is against Paytm Payments Bank and not the Paytm app itself. He also said that it is the prerogative of the banks to decide if they want to forge partnerships with Paytm Payments Bank. Read more
Feb 8, 2024, 13:00 IST: Shares of One97 Communications resumed downward trajectory on Thursday (February 8) after recovering some lost ground in the last two sessions. The stock opened at INR 525 per share, a rise from the previous day’s close of INR 496.25. However, it soon lost gains, dropping to INR 450 early on, down 9.2%. Read more
Feb 8, 2024, 11:30 IST: As fintech major Paytm navigates the complexities of the Reserve Bank of India’s (RBI) recent action, securities depository Central Depository Services India (CDSL) has initiated customer verification inspection of Paytm Money, the wealth management entity operated by One 97 Communications. Read more
Feb 7, 2024, 19:15 IST: Financial services secretary Vivek Joshi said that the RBI’s action on Paytm Payments Bank is a issue between the company and the central bank. He said the government believes that the RBI must have taken the action in the overall interest of the consumer and the economy. Read more
Feb 7, 2024, 13:00 IST: One97 Communications, which runs Paytm, may have to continue without its payments bank business after February 29 as the Reserve Bank of India refused to offer any concessions sought by the company’s CEO and founder Vijay Shekhar Sharma during his meeting with the central bank officials.
Feb 7, 2024, 12:30 IST: The Reserve Bank of India (RBI) is likely to issue a clarification on the ongoing Paytm crisis considering the fintech major’s massive user base. Financial services secretary Vivek Joshi said that the RBI had imposed curbs in the interest of consumer protection. Read more
Feb 7, 2024, 11:00 IST: Shares of Paytm’s parent entity One 97 Communications Ltd climbed nearly 10% in Wednesday’s trade as reports emerged suggesting the CEO Vijay Shekhar Sharma met finance minister Nirmala Sitharaman and the Reserve Bank of India officials in the wake of curbs on Paytm Payments Bank. Read more
Feb 6, 2024, 21:30 IST: Paytm CEO and founder Vijay Shekhar Sharma met finance minister Nirmala Sitharaman, a day after he met the officials of the RBI. Read more
Feb 6, 2024, 16:00 IST: Paytm said it is not exploring legal options or considering filing a writ petition in the high court to challenge the RBI’s action on Paytm Payments Bank.
Feb 6, 2024, 15:30 IST: After hitting the lower circuit in three consecutive sessions, shares of Paytm recovered today to end the trading session over 3% higher on the BSE. Read more
Feb 6, 2024, 13:34 IST: Paytm’s chief executive officer Vijay Shekhar Sharma, along with other staff, met the RBI officials to discuss a roadmap to address the regulatory concerns flagged by the central bank.
Feb 6, 2024, 11:55 IST: A group of entrepreneurs has written to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and the Reserve Bank of India (RBI) governor Shaktikanta Das, urging them to “review” and “reconsider” the regulatory directive asking Paytm’s banking unit to bring down the curtain on its key banking services after February 29. Read more
Feb 5, 2024, 22:45 IST: Responding to a clarification sought by the exchanges on a report about Jio Financial Services being in talks to acquire the wallet business of Paytm, the Reliance-owned company called the report speculative and said it is not in any negotiations in this regard with Paytm. Read more
Feb 5, 2024, 20:40 IST: Paytm once again denied reports of it or Paytm Payments Bank being under investigation for violation of foreign exchange rules. The fintech company termed the reports misleading, baseless, and malicious.
Feb 5, 2024, 17:10 IST: Exchanges seek clarification from Jio Financial Services and Paytm on reports that the former is in talks with the latter to acquire its wallet business.
Feb 5, 2024, 15:30 IST: Paytm rejected a report which said it was in talks with various companies, including Jio Financial Services and HDFC Bank, to sell its wallet business. Read more
Feb 5, 2024, 15:20 IST: Revenue secretary Sanjay Malhotra said that law enforcement agencies will probe Paytm if needed but at the moment there is no such action afoot. Earlier, Paytm said it was not facing any investigation from the ED. Read more
Feb 5, 2024, 13:30 IST: Shares of Jio Financial Services jumped over 16% in the intraday trading on the BSE as a report said it was among the leading contender to acquire the wallet business of Paytm.
Feb 5, 2024, 10:00 IST: BSE and NSE halved the circuit limits for Paytm to 10% from 20% earlier after the company’s shares hit the lower circuit in the previous two sessions. Read more
Feb 4, 2024, 12:49 IST: Traders body CAIT asks traders and businesses to switch from Paytm to other payment platforms for business-related transactions, in the aftermath of RBI’s crackdown on Paytm. Read more
Feb 3, 2024: In a townhall, Paytm founder Vijay Shekhar Sharma assured all its staff that there would be no layoffs and the company has been in talks with the RBI. Read more
Feb 2, 2024, 22:52 IST: RBI mulls the cancellation of the operating licence of Paytm Payments Bank next month, post 29 Feb 2024. Read more
Feb 2, 2024, 18:10 IST: During an investor call, Paytm’s top management assured analysts of major brokerages and advisories that the fintech giant was in discussions with the RBI to find the way forward and spelled out some of the steps the company would take to resolve the issue. Read more
Feb 2, 2024, 9:10 IST: Paytm’s founder took to X to say that the app will continue to work beyond February 29, in what was his first public statement after the RBI’s order. Read more
Feb 2, 2024, 9:16 IST: Shares of Paytm were locked at the lower circuit limit of 20% for the second consecutive session after slipping below the INR 500 mark. Read more
Feb 1, 2024, 16:46 IST: Several startup founders and VCs came out in support of Paytm CEO and founder Sharma following the RBI’s actions on Paytm Payments Bank. Read more
Feb 1, 2024, 9:15 IST: Shares of Paytm slumped 20%, hours after the RBI’s order. Read more
Feb 1, 2024, 23:25 IST: Sharma informed exchanges that he has not taken any margin loans, or pledged any shares, whether directly or indirectly owned by him. Read more
Feb 1, 2024, 8:48 IST: In an exchange filing, Paytm said it expects its annual EBITDA to take INR 300-500 Cr hit following the central bank’s action on its payments bank. Read more
31 Jan 2024, 17:10 IST: RBI bars Paytm Payments Bank from any deposits or credit transactions, or top-ups in any of its customer accounts. RBI further said Paytm Payments Bank can also not provide any other banking services, such as UPI facility and fund transfers after February 29, 2024. Read more